Oil palm: A sustainable agro-industry in Colombia

The cultivation of oil palm has developed most intensely in Malaysia and Indonesia, who
share about 80% of the entire oil palm production area in the world. At the secondary level,
by order of importance, are Nigeria, Thailand, Colombia and Ivory Coast. Together, these
countries account for about 12% of the world’s palm producing area.

The main agro-industrial palm products are crude palm oil, crude palm kernel oil, and palm
kernel cake. Between 1960 and 2003 production increased rapidly, with palm oil
production growing at an annual rate of 13.5%, crude palm kernel oil at 11.76% yearly,
and palm kernel cake increasing by 11.82% yearly. The most common agro industry
products with oil palm are sweets, emulsions, bonds among others, In non-food products
are found in soaps, candles, cosmetics and fuels.

During the last fifteen years Colombia has experienced the effects of liberalized trade
agreements (commercial aperture) without a strategy to consolidate the agricultural
sector’s ability to handle it. As a result, the competitive skills of all Colombian rural sector
actors were not properly developed. There are instances where for some sectors the
adaptation has not been traumatic and may have even benefited. At the other extreme,
however, other sectors are facing immense obstacles to continuing their productive
activities, because they are forced to compete with more efficient and subsidized
producers in other countries

One of the sector’s main concerns has been the sustainable management of the
plantations. The results of a recent study have been published in the book entitled
Environmental performance of the Colombian palm culture sector ,show the following
findings. The impact of the world wide level cultivation of oil palms on biodiversity has
been the theme of intense debate, because of the destruction o tropical forest areas in
Malaysia and Indonesia. However, the situation in Colombia has been different, because
even though a high proportion of the area was originally forested, 87% of the areas
planted to oil palm were previously used for annual crops and extensive cattle grazing with
some degree of degradation.

On the other hand, In Colombia, sectoral associations have gained strength by

establishing contracts with the State to manage public resources deriving from the taxes
paid by its associates. In the case of the oil palm, Fedepalma collects a fee amounting to
1% of the value of the crude palm oil and 1% of the value of the palm kernel, which is used
for investment in the development of the palm oil sector in the areas of : research,
technical assistance and technology transfer, sanitary control, commercialization,
promotion of product consumption and economic, social and infrastructure programmes

The problems in Colombia are: Most pests and diseases of oil palm in Colombia are
unknown in other places, so it cannot be expected that technology developed in other
countries be adapted. Instead, Colombia must develop its own technology. Furthermore,
the regional diversity of Colombia’s oil palm production zones is manifested in varying
climatic conditions and diverse soil characteristics, which is reflected in specific problems
for each region.

In conclusion this article has reviewed the performance of the Colombian oil palm sector
from the social, economic and environmental perspective. It has shown an agro-industry
with a capacity to face a complex situation in the rural areas of Colombia, where poverty
coexists with illicit crops. Oil palms offer a viable alternative in which the palm worker’s
quality of life is high (in terms of job stability, health services and education). Furthermore,
country’s internal demand for palm oil products now is satisfied, and there is a need to
reduce costs in order to compete on the international market. However, the oil palm-
growing sector is confident that it will be able to continue to overcome obstacles and
consolidate itself as a sustainable agro-industry in Colombia.

An integral framework for sustainability assessment in agro-industries: application

to the Costa Rican coffee industry

The broad range of definitions for sustainability has led to the development of several
sustainability evaluation frameworks that have emphasized facets of sustainability but
have not encompassed all aspects found at the industry and regional level. The aim of this
study was to address the broader issues of sustainability of agro-industrial systems.
Rather than exclusively focusing on the environmental and social aspects of those
economic activities that take place within the boundaries of industrial systems, it should be
recognized that they belong to a broader system. The various types of sustainability are
highlighted and current sustainability frameworks are evaluated. A comprehensive
sustainability model that adequately takes into consideration the various types of
sustainability within industrial systems was developed. The proposed framework
considered indicators that provide descriptions of the systemic nature of industry and
incorporates two-dimensional indicators instead of solely focusing on indicators that
provide a one-dimensional, piecemeal evaluation of economics, environment, social and
institutional sustainability. By evaluation of the boundaries of each arena, it provides
comprehensive understanding of the system. The sustainability of the Costa Rican coffee
industry within the context of the new framework is discussed. The framework presented
integrates concepts such as industrial ecology and cleaner production, along with the more
traditional EMS and social justice programmes, to promote sustainability. The
development of employment and economic returns that benefit the local and regional
systems through the generation of additional value-added products are promoted through
the integration of eco-efficiency into the framework.

Labuschagne et al. (2005) report that the GRI is largely a reporting-based initiative that
provides over 100 sustainability indicators to be used to evaluate social, economic and
environmental sustainability . A thorough evaluation of this framework revealed that many
of the indicators are difficult to evaluate and little guidance is given to industry on how to
choose between indicators. According to Velva and Ellenbecker (2001), the drawback from
an industrial perspective is the focus on existing systems boundaries, specifically those
that define the legal corporate responsibility. In order to develop sustainability at a local or
regional level, one must be able to easily integrate external stakeholders and inter-
organizational cooperation.

The most significant improvement found within the Wuppertal framework is the
acknowledged linkage between the various indicators (Sprangenberg and Bonniot 1998).
According to Labuschagne et al. (2005), this framework should be applicable at the micro
or business/industry level, but its economic and social indicators would need modification
to reflect this focus. Kuhndt and von Geibler (2002) indicated that this framework permits
the integration of technical innovation by focusing on the relationships between improved
resource and energy-use efficiencies and improved economic and social conditions. It
places the institutional sustainability indicators central to the framework, which is important
in a developing world setting where intuitional conditions may hinder the technical and/or
economic innovations that would otherwise be easily implemented (UN 2001).

The formulation of the core set of sustainability indicators for industrial systems is a much
needed step in implementing a sustainability strategy for those systems. It is preceded by
a broad analysis of the information needs, the goals of the stakeholders and the support
that needs to be provided by the framework. Since conclusions on where the problems are
highlighted within the system may have a substantial impact on the priorities, it is
necessary to have a well thought out methodology leading to conclusions that are
verifiable. With adaptation of some recommendations made by Wolters (2001) and Bell
and Morse (2003), a five-step methodology was developed for the evaluation of
sustainability within industrial

Several authors have indicated that the Costa Rican coffee industry is not sustainable in
its present. Linear production systemsand unsustainable growth have permitted resource
exploitation, high levels of resource and energy inefficiencies, and significant waste
production to continue. The mechanisms needed to address the problem as a whole have
yet to be implemented. Traditional plantations had a diversity of edible and income-
producing shade trees and ground cover that provided some stability to the farmer when
coffee prices dropped. These have been developed into unsustainable monoculture
plantations. Since the green revolution, traditional coffee plantations have been
increasingly ‘technified’ and developed into energy and chemically intensive plantations,
designed to increase yield in a time of high pricing and high demand.

The focus of sustainability frameworks for the coffee industry has been too limited in scope
to offer comprehensive guidance towards sustainability. Frameworks aimed at evaluating
and improving the sustainability of the industry have focused on increased production
(MAG 2002) or certification measures whose focus is to receive market recognition for
eco-friendly or fair-trade practices (van den Elzen 2002; Wolters and Danse, 2003) and,
therefore, only related to what is required for certification The frameworks for sustainability
in Costa Rica have incorporated: -Limited evaluations of the various elements of
sustainability within only one subsection of the industry. -An end goal only focused on the
improvement of economic return from the coffee crop itself (ICAFE 2003b). -Compliance-
based solutions (Wolters and Danse 2003), and (d) minimum standards that do not have a
long-term view (Schram 2000; NCPC 2003).

In conclusion The broad range of definitions of sustainability has led to the development of
several evaluation frameworks that emphasized a variety of facets of sustainability but did
not encompass all aspects found at industry and regional levels. The results have
produced disjointed (and sometimes contradictory) directives that diminish sustainability
successes by dividing efforts. This is apparent in developing countries where sustainability
initiatives have largely arisen from external support structures such as NGOs, and
international aid organizations that have been unable to provide a truly coordinated
approach. Indicators that can be understood by and are relevant to industry stakeholders
need to be developed. Carte blanche application of one-dimensional and/or macrolevel
indicator frameworks leaves many aspects un-addressed, particularly linkages between
various aspects of social, economic, environmental and institutional sustainabilities. The
inclusion of indicators that represent relationships between the social, environmental,
economic and institutional aspects of sustainability provided multi-dimensional
considerations in the evaluation of sustainability and avoided the over- or under-emphasis
of one aspect. The participation of stakeholders will ensure that issues addressed in the
evaluation include issues most important to the end-user, as opposed to providing
solutions that have no practical applications. In addition, the framework presented
integrates concepts such as industrial ecology and cleaner production, along with the more
traditional EMS and social justice programmes, to promote sustainability.

The Politics of Building Alternative Agro-food Networks in the Belly of Agro-industry

Alternative food production and provisioning efforts are variable and their success also
varies across regions. In particular, rural areas characterized by large-scale, agro-
industrial forms face challenges in reconnecting resident consumers with local producers
that are less apparent in urban and ex-urban areas. Our case study situates these
challenges in two globalized, agro-industrial counties in rural, central Washington State. In
order to understand the contemporary viability of alternative agro-food networks, we
suggest attention to regional agro-political discourse and agro-industrial history.With a
focus on organic production, direct marketing, and community-supported agriculture
(CSA), we investigate how regional politics can hamper or hasten the growth of
alternatives in terms of food provisioning. Using archival, interview, and survey data, we
find that the transformative capacity of alternative food networks is locally contingent,
shaped by political ideologies and consumer acceptance of existing social constructions of
agricultural systems.
The marvel of the global food system is its ability to overcome spatial and temporal
constraints (O’Hara and Stagl 2001). As the average number of miles food travels before it
is eaten increases, however, the ills of a global intensification and regional specialization in
agriculture became more apparent. The litany of environmental degradation,
disempowerment of farmers, health effects of high chemical inputs, erosion of rural
communities, and economic woes of family farmers, is prompting some to rethink the
farmer–consumer connection (Ikerd, 1999; Kimbrell 2002). These efforts often involve a
deliberate attempt to relocalize circuits of food provision through local food systems, with
an emphasis on farmer’s markets, community-supported agriculture (CSA), and food
policy councils (Feenstra 1997; Starr et al. 2003). Small-scale farmers and “responsible
eaters” (following Berry 1990) are looking for alternative ways to participate in a food
system, ways that are outside the conventional distribution and marketing system, and that
allow for greater local control over food.

The case of rural Washington in the development of alternative food networks is

particularly intriguing, because not much is known about alternative agriculture in this
region (despite recent increases in organic acreage) and because of the geopolitical divide
between the urbanized, more western side of the state (source area for progressive social
movements) and central or eastern Washington agro-industrial areas. The urban core of
Washington State lies to the west of the Cascade Range, as does the state capitol and
much of its policymaking apparatus. This physical division of natural resource base to the
east of the mountains and urban decision-making power to the west is an oft-repeated
landscape metaphor for the schism in political viewpoints that characterize the state.
Therefore, we focused this examination on two rural, agro-industrial counties in central
Washington (Chelan and Grant) and with one urbanized county in western Washington
(King) as a comparative case.

Organic farming has been identified as one of the options for an environmentally
sustainable agriculture as an alternative to the ecological crises of high externalinput
agriculture practiced in the US today (Altieri 1987; Pugliese 2001; Sligh 2002). Organic
farming may be the most formally regulated and legitimized agro-alternative, which,
ironically, makes it most vulnerable to co-optation by agribusiness. As Guthman argues
“organic regulation makes organic agriculture safe for capitalism” (1998: 150). As long as
the price premium for these now chic food products persists, industrialized organic agro-
food production will expand. While a handful of central Washington farmers have been
growing organic since certification was established, as part of an organic food cooperative
movement, most organic production was initiated recently. Regional organic apple acreage
quadrupled after the 1989 Alar scare, when this growth regulant chemical used on apples
was linked with cancer in children and the prices of conventionally produced apples
plummeted (interview, March 9, 2001). Chelan County was the early leader in increased
organic apple acreage as farmers tried to dissociate their practices from Alar usage, but
more recently Grant County organic acreage have exceeded those in Chelan (except for in
pears).
The defensive localism of agro-politics in central Washington lends support to direct
marketing as a viable option for small farmers trying to sustain their operations. The
attempt to gain a greater share of the food dollar by eliminating middlemen or distribution
infrastructures does not have the political connotations that circumscribe organic food
provision in this region and thus much of the emphasis in alternative agro-food networks is
on direct marketing. What is most intriguing is that direct marketing does not necessarily
engage local food networks in a proximate sense. Some of the most successful direct
marketing schemes in this region involve extra-local marketing in larger urban areas
throughout the Northwest and beyond, for example, by delivering to urban congregations
at churches and temples or gift boxes through Internet sales. For most producers,
however, selling to wholesale buyers remains the most important method for marketing,
according to our survey. In Chelan County, 38% of growers surveyed planned to increase
sales to growers’ cooperatives and in Grant County, 30% of growers planned to increase
sales through contract production.

The story of community-supported agriculture (CSA), in Chelan and Grant Counties further
illustrates the challenges raised by regional agro-politics. CSA involves a shared
commitment between community members and farmers to build a more local and
equitable agricultural system, one that allows growers to focus on land stewardship and
still maintain productive and profitable small farms (DeMuth 1993). Typically, members pay
in advance to cover the anticipated costs of the farm operation, providing the farmer with
working capital and then receiving fresh produce as harvested during the growing season.
There are approximately eighty CSA farms within Washington State, with the
overwhelming majority servicing the Seattle area and the Puget Sound corridor (Ostrom
2005). Within a politics of defensive localism, CSA would seem to be a great alternative for
local direct marketing in these counties and one that could accommodate different income
levels. However, CSA is not a familiar concept, nor one well understood in these agro-
industrial regions. Results from our consumer survey show that 85–95% of respondents in
these counties had never used a CSA and about 70% of respondents were not familiar
with CSA as a concept. Perhaps this is not so surprising since currently there is only one
operational CSA in the two-county region. Furthermore, less than 5% of the Chelan or
Grant County producers answering our survey thought they might try to add CSA sales
within the next three years. A more widespread understanding of CSA in these counties
would likely help ensure viability of alternative agrofood networks, but without locally active
model farms, promoting CSA in rural areas is an incremental process.

In conclusion The inspiration for this research was to enhance viability of alternative agro-
food networks and the small farms that are positioned within them. Our evaluation of their
viability relied upon an investigation of the opportunities and constraints that small farmers
and resident eaters face in trying to reconnect the spatial/temporal functions of food
systems. We found that the forms of alternative agro-food networks are very place-
specific. Alternative farmers in peri-urban counties who can appeal to the nearby urban,
social elite and even farmers in ex-urban counties that would qualify as Walker’s (2003)
“New West” are more likely to access a receptive consumer base in a relatively local food
network. Rural counties geared to the agro-industrial export market present difficulties to
the direct marketing of alternative networks due to smaller numbers of potential
consumers, especially more affluent consumers, who are committed to eating responsibly.
Our research suggests that consumers in these counties are at times unfamiliar with these
ideas, and at other times, resistant to the ideologies that permeate them. Successful direct
marketing strategies in these types of rural counties are often “extra-local”— direct
marketing in distant urban areas or relying on urban tourist traffic passing through.